1995-208B:\BAR~4ORTH.ORD
ORD HA CE
AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A CONTRACT
BETWEEN THE CITY OF DENTON AND BARWORTH CORPORATION; AUTHORIZING
THE MAYOR AND THE CITY MANAGER TO EXECUTE ANY AND ALL DOCUMENTS
NECESSARY TO CONSUMMATE THE PURCHASE OF REAL PROPERTY IN ACCORDANCE
WITH SAID CONTRACT; AUTHORIZING THE EXPENDITURE OF FUNDS AND
PROVIDING AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the city Council of the city of Denton,
Texas, hereby approves the contract between the City of Denton and
Barworth Corporation, a copy of which is attached hereto as Exhibit
"A" and incorporated by reference herein.
SECTION II. That the City Council hereby authorizes the Mayor
and City Manager to execute any and all documents necessary to
consummate the purchase of real property in accordance with said
Contract.
SECTION III. That the City Council hereby authorizes the
expenditure of funds as provided in the Contract.
SECTION IV. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the /7~ day of ~~ ,
1995.
BOB CASTLEBERRY, MA~~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
HERBERT L. PROUTY, CITY ATTORNEY
EXHIBIT "A"
REAL ESTATE CONTRACT
STATE OF TEXAS
COUNTY OF DENTON
THIS CONTRACT OF SALE is made by and between BARWORTH
CORPORATION (hereinafter referred to as "Seller") and CITY OF
DENTON, TEXAS, a home rule municipality, of Denton, Denton County,
Texas, (hereinafter referred to as "Purchaser"), upon the terms and
conditions set forth herein.
PURCHASE AND SALE
Seller hereby sells and agrees to convey, and Purchaser hereby
purchases and agrees to pay for land situated in Denton County,
Texas, known as LOT 1 AND 2 OF BLOCK 9, OWSLEY PARK ADDITION TO THE
CITY OF DENTON, being more particularly described in Survey Plat
identified as Exhibit "A" attached hereto and incorporated herein
by reference for all purposes together with all and singular the
rights and appurtenances pertaining to the property, including any
right, title and interest of Seller in and to adjacent streets,
alleys or rights-of-way (all of such real property, rights, and
appurtenances being hereinafter referred to as the "Property"),
together with any improvements, fixtures, and personal property
situated on and attached to the Property, for the consideration and
upon and subject to the terms, provisions, and conditions herein-
after set forth.
PURCHASE PRICE
1. Amount of Purchase Price. The purchase price for the
Property shall be the sum of Twenty-three Thousand Nine Hundred and
Forty-eight Dollars and no/100 ($23,948.00).
2. Payment of Purchase Price. The full amount of the purchase
price shall be payable in cash at the closing.
PURCHASER'S OBLIGATIONS
The obligations of Purchaser hereunder to consummate the trans-
actions contemplated hereby are subject to the satisfaction of each
of the following conditions, any of which may be waived in whole or
in part by Purchaser at or prior to the closing.
1. Preliminary Title Report. Within twenty (20) days after
the date hereof, Seller, at Purchaser's sole cost and expense,
shall have caused the Title Company (hereinafter defined) to issue
a preliminary title report (the "Title Report") accompanied by
copies of all recorded documents relating to easements, rights-of-
way, etc., affecting the Property. Purchaser shall give Seller
written notice on or before the expiration of ten (10) days after
Purchaser receives the Title Report that the condition of title as
set forth in the Title Report is or is not satisfactory, and in the
event Purchaser states the condition is not satisfactory, Seller
may, at Seller's option, promptly undertake to eliminate or modify
all unacceptable matters to the reasonable satisfaction of
Purchaser. In the event Seller is unable to do so within ten (10)
days after receipt of written notice, this Agreement shall there-
upon be null and void for all purposes and the Escrow Deposit, if
any, shall be forthwith returned by the Title Company to Purchaser
(as Purchaser's sole and exclusive remedy) and neither party shall
have any further rights or obligations hereunder; otherwise, this
condition shall be deemed to be acceptable and any objection there-
to shall be deemed to have been waived for all purposes.
2. Survey. A survey has been provided Purchaser dated July
31, 1989 that appears to be prepared by a duly licensed Texas land
surveyor. The Purchaser may request from Seller, at Purchaser's
expense, an additional survey staked on the ground that shows the
location of all improvements, highways, streets, roads, railroads,
rivers, creeks, or other water courses, fences, easements, and
rights-of-way on or adjacent to the Property, if any, and contain
a surveyor's certification that there are no encroachments on the
Property.
Purchaser will have ten (10) days after receipt of the
additional survey, if one is requested, to review and approve the
survey. In the event the survey is unacceptable, then Purchaser
shall within the ten (10) day period, give Seller written notice of
this fact. Seller may, at Seller's option, promptly undertake to
eliminate or modify the unacceptable portions of the survey to the
reasonable satisfaction of Purchaser. In the event Seller is un-
able to do so within ten (10) days after receipt of written notice,
Purchaser may terminate this Agreement as Purchaser's sole and ex-
clusive remedy, and the Agreement shall thereupon be null and void
for all purposes and the Escrow Deposit, if any, shall be returned
by the Title Company to Purchaser and neither party shall have any
further rights or obligations hereunder. Purchaser's failure to
give Seller this written notice shall be deemed to be Purchaser's
acceptance of the survey.
3. Seller's Compliance. Seller shall have performed, obser-
ved, and complied with all of the covenants, agreements, and con-
ditions required by this Agreement to be performed, observed, and
complied with by Seller prior to or as of the closing.
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller hereby represents and warrants to Purchaser as follows,
which representations and warranties shall be deemed made by Seller
to Purchaser also as of the closing date:
PAGE 2
1. There are no parties in possession of any portion of the
Property as lessees, tenants at sufferance, or trespassers;
2. Except for the prior actions of Purchaser, there is no
pending or threatened condemnation or similar proceeding or asses-
sment affecting the Property, or any part thereof, nor to the best
knowledge and belief of Seller is any such proceeding or assessment
contemplated by any governmental authority;
3. To the actual knowledge of Seller, Seller has complied with
all applicable laws, ordinance, regulations, statues, rules and
restrictions relating to the Property, or any part thereof.
4. To the actual knowledge of Seller, there are no toxic or
hazardous wastes or materials on or within the Property. Such
toxic or hazardous wastes or materials include, but are not limited
to, hazardous materials or wastes as same are defined by the
Resource Conservation and Recovery Act (RCRA), as amended, and the
Comprehensive Environmental Response Compensation and Liability Act
(CERCLA), as amended. In the event any such toxic or hazardous
wastes or materials are found upon the Property which Seller had
actual knowledge of, Seller shall be responsible for the expense of
removal of these wastes or materials upon receipt of written notice
of the presence of these wastes or materials.
5. To the actual knowledge of Seller, this property is not
subject to any restriction that would limit the use of this prop-
erty to residential purposes only, and the Seller is not aware of
any restriction (other than zoning ordinances) that would prohibit
this property from being used for a community police office and
neighborhood center.
AS-IS SALE
Except as expressly stated above in Representations and
Warranties of Seller, Purchaser expressly acknowledges that the
Property is being sold and accepted AS-IS, W~ERE IS, and Seller
makes no representations or warranties with respect to the physical
condition or any other aspect of the Property (collectively, the
"Property Conditions"), and PURCHASER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANYAND ALL ACTUAL OR POTENTIAL RIGHTS PURCHASER
MIGHT HAVE REGARDING ANY FORM OR WARRANTY, EXPRESS OR IMPLIED OR
ARISING BY OPEHATION OF LAW, INCLUDING BUT IN NO WAY LIMITED TO ANY
WARRANTY CONDITION, HABITABILITY, MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE relating to the Property, its improvements or
the Property Conditions.
CLOSING
The closing shall be held at the office of Pentex Title Company
on or before October 31, 1995, or at such time, date, and place as
Seller and Purchaser may mutually agree upon (which date is herein
referred to as the "closing date").
PAGE 3
CLOSING REQUIREMENTS
1. Seller's Requirements. At the closing Seller shall:
A. Deliver to Purchaser a duly executed and acknowledged
Special Warranty Deed conveying good and indefeasible title
in fee simple to all of the Property, free and clear of any
and all liens, encumbrances, conditions, easements, assess-
ments, and restrictions, except for the following ("Permit-
ted Exceptions"):
1. General real estate taxes for the year
of closing and subsequent years not yet
due and payable;
2. Any exceptions approved or waived by
Purchaser pursuant to Purchaser's Obliqa-
tions hereof; and
3. Any other exceptions approved by Pur-
chaser in writing.
B. Deliver to Purchaser a Texas Owner's Title Policy at
Purchaser's sole expense, issued by Dentex Title, 417 S.
Locust Street, Denton, Texas 76201 (the "Title Company") in
Purchaser's favor in the full amount of the purchase price,
insuring Purchaser's fee simple title to the Property
subject only to the Permitted Exceptions, such other excep-
tions as may be approved in writing by Purchaser, and the
standard printed exceptions contained in the usual form of
Texas Owner's Title Policy, provided, however:
1. The boundary and survey exceptions
shall be deleted if required by Purchaser
and if so required, the costs associated
with same shall be borne by Purchaser,
unless such costs exceed Two Thousand Dol-
lars ($2,000.00), in which case, at Pur-
chaser's option this contract may be
terminated;
2. The exception as to restrictive cove-
nants shall be deleted, unless there are
restrictive covenants which are Permitted
Exceptions;
3. The exception as to the lien for taxes
shall be limited to the year of closing
and shall be endorsed "Not Yet Due and
Payable"; and
4. The exception as to liens encumbering
the Property shall be deleted.
PAGE 4
C. Deliver to Purchaser possession of the Property.
2. Purchaser's Requirements. Purchaser shall pay the full
cash purchase price to Seller at Closing in immediately available
funds.
3. Closinq Costs. Through the date of Closing, Purchaser
shall only be responsible for the payment of taxes assessed by the
City of Denton and, Seller shall pay all other taxes assessed by
any other tax jurisdiction through the date of Closing. Each party
shall pay its own attorneys' fees.
All other costs and expenses of closing in consummating the
sale and purchase of the Property not specifically allocated herein
shall be paid by the Purchaser.
REAL ESTATE COMMISSION
Ail real estate commissions occasioned by the consummation of
this Agreement and incurred by, through or under Seller shall be
the sole responsibility of Seller, and Seller agrees to indemnify
and hold harmless Purchaser from any and all claims for these
commissions. Purchaser represents and warrants that it has not
engaged the services of any agent, broker or similar party in
connection with this transaction and agrees to indemnify and hold
harmless Seller from the claims of any agent, broker or other
similar party claiming by, through or under Purchaser.
BREACH BY SELLER
In the event Seller shall fail to fully and timely perform any
of its obligations hereunder or shall fail to consummate the sale
of the Property except for Purchaser's default, Purchaser may
either enforce specific performance of this Agreement or terminate
this Agreement.
BREACH BY PURCHASER
In the event Purchaser should fail to consummate the purchase
of the Property, the conditions to Purchaser's obligations set
forth in PURCHASER'S OBLIGATIONS having been satisfied and Pur-
chaser being in default Seller may either enforce specific perfor-
mance of this Agreement, or terminate this Agreement.
MISCELLANEOUS
1. Assiqnment of Aqreement. This Agreement may not be
assigned by Purchaser without the express written consent of
Seller.
PAGE 5
2. Survival of Covenants. Any of the representations, war-
ranties, covenants, and agreements of the parties, as well as any
rights and benefits of the parties, pertaining to a period of time
following the closing of the transactions contemplated hereby shall
survive the closing and shall not be merged therein.
3. Notice. Any notice required or permitted to be delivered
hereunder shall be deemed received when sent by United States mail,
postage prepaid, certified mail, return receipt requested, addres-
sed to Seller or Purchaser, as the case may be, at the address set
forth beneath the signature of the party.
4. Texas Law to Apply. This Agreement shall be construed
under and in accordance with the laws of the State of Texas, and
all obligations of the parties created hereunder are performable in
Denton County, Texas.
5. Parties Bound. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective heirs,
executors, administrators, legal representatives, successors and
assigns where permitted by this Agreement.
6. Leqal Construction. In case any one or more of the pro-
visions contained in this Agreement shall for any reason be held to
be invalid, illegal, or unenforceable in any respect, said invalid-
ity, illegality, or unenforceability shall not affect any other
provision hereof, and this Agreement shall be construed as if the
invalid, illegal, or unenforceable provision had never been
contained herein.
7. Prior Agreements Superseded. This Agreement constitutes
the sole and only agreement of the parties and supersedes any prior
understandings or written or oral agreements between the parties
respecting the within subject matter.
8. Time of Essence. Time is of the essence in this Agreement.
9. Gender. Words of any gender used in this Agreement shall
be held and construed to include any other gender, and words in the
singular number shall be held to include the plural, and vice
versa, unless the context requires otherwise.
10. Memorandum of Contract. Upon request of either party, both
parties shall promptly execute a memorandum of this Agreement
suitable for filing of record.
11. Compliance. In accordance with the requirements of the
Texas Real Estate License Act, Purchaser is hereby advised that it
should be furnished with or obtain a policy of title insurance or
Purchaser should have the abstract covering the Property examined
by an attorney of Purchaser's own selection.
PAGE 6
12. Time Limit. In the event a fully executed copy of this
Agreement has not been returned to Purchaser within five (5) days
after Purchaser executes this Agreement and delivers same to Sel-
ler, Purchaser shall have the right to terminate this Agreement
upon written notice to Seller.
DATED this 14th day of Auqust , 19 95
SELLER: BARWORTH CORPORATION
J. ~e~o~ ~avz~r. P~side~t
._~_~I~04 {4. University Dr., ~ 400
Denton, Texas 76201-1794
PURCHASER: THE CITY OF DENTON, TEXAS
215 E. McKinney Stre
Denton, Texas 762yl
STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged before me on Auqust 14, 1995
for Barworth Corporation, a Texas corporation, on behalf of said
:~'~'~,~ COMMISSION EXPIRES~
j ,~ JANUARY 18, 1997 f TE~S
STATE OF TEXAS
CO~TY OF DENTON
This instrument was acknowledged before me on ~~/~ /~
of the city of Denton, a municipal corporation, known to me to be
the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of the
said City of Denton, Texas, a municipal corporation, that he was
duly authorized to perform the same by appropriate resolution of
the City Council of the City of Denton and that he executed the
same as the act of the said City for purpose and consideration
therein expressed, and in the capacity therein sta~ed~
~ay~8 ~7 Il IN ~D FOR TE~S
PAGE 7
I.q.tvyers fle
Instance oratlon
NATIONAL HEADQUARTERS
RICHMOND, VIRGINIA
OWNER POLICY NUMBER
90 - 00 - 476973
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS
AND STIPULATIONS, LAWYERS TITLE INSURANCE CORPORATION, ~ ~ir~!~ia cprporetion, herein called the Company, insures, as of Date of Policy
ofsh°wn in Schedule A, against loss or damage, not exceeding' the Ar~cl~/t~U~'ar~e ~ed~.. ---.·' ' in Schedule A, sustained or incurred by the insured by reason
Title to the estate or interest described in Schedule A ' stated therein;
2. Any defect in or lien or encumbrance on the title; ~:~ ·
3. Any statutory or constitutional mechanic's, contractor's ' labor or material having its inception on or before Date of Policy;
4. Lackofarightofaccesstoandfromtheland; .~iI' ~..~
5. Lack of good and indefeasible title.
The Company also will pay the costs, attorneys' fees and expenses inCbrr~ in defense of:the title, as insured, but only to the extent provided in the Conditions
and Stipulations.
IN WITN ESS WH ER EOF the Company has caused this policy to be signed and sealed, to bevalid when Schedule A is countersigned by an authorized officer
or agent of the Company, all in accordance with its By-Laws·
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or
expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting,
regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement
now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land
is or was a part; or (iv) environmental protection, or the effect of any violation of these laws. ordinances or governmental regulations, except to the
extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the
land has been recorded in the public records at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or
encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
2. Rights of eminent domain unless notice of the exercisethereof has been recorded in the public records at Date of Policy, but not excluding from coverage
any taking that has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge,
3. Defects, liens, encumbrances, adverse claims or other matters:
(a) created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the
Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy;
(e) resulting in loss or damage that would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy.
4. The refusal of any person to purchase, lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of
unmarketability of the title.
5. Any claim which arises out of the transaction vesting in the person named in paragraph 3 of Schedule A the estate or interest insured by this policy, by
reason of the operation of federal bankruptcy, state insolvency, or other state or federal creditors' rights laws that is based on either
(i) the transaction creating the estate or interest Insured by this Policy being deemed a fradulent conveyance or fradulent transfer or a voidable
distribution or voidable dividend,
(ii) the subordination or recharacterization of the estate or interest insured by this Policy as a result of the application of the doctrine of equitable
subordination or
(iii) the transaction creating the estate or interest insured by this Policy being deemed a praferential transfer except where the preferentialtransfer results
from the failure of the Company or its issuing agent to timely file for record the instrument of transfer to the insured after delivery or the failure of such
recordation to impart notice to a purchaser for value or a judgment or lien creditor.
Policy 9o- Texas Form T-1 (1-1-93) Cover Sheet
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SNOIl~nd~s GNV SNOIIlaNOO
R-03 Property Catg.: L
1000:394.00 County Code: 121
OWNER POLICY OF TITLE INSURANCE
SCHEDULE A
GF No.: 95-1296D
Policy No.: 90-00-476973 Issued with Policy No.
Amount of Insurance: $23,948.00
Premiu~ $394. O0
Date of Policy: November 03, 1995 at 3:13 p. n~
1. Name of Insured:
CITY OF DENTON, TEXAS
2. The estate or interest in the land that is covered by this policy is: Fee Simple
3. Title to the estate or interest in the land is insured as vested ir~
CITY OF DENTON, TEXAS
4. The land referred to in this policy is described as follows:
LOTS 1 AND 2, IN BLOCK 9 OF THE OWSLEY PARK ADDITION, AN ADDITION TO THE CITY OF
DENTON, DENTON COUNTY, TEXAS, FILED IN VOLUME 1, PAGE 6 t/2 OF THE PLAT RECORDS OF
DENTON COUNTY, TEXAS.
Dentex Title Company
Lawyers Title Insurance Corporation ~uthorized C
FORM T-l: Owner Policy-Schedule A Effective January 1, 1993
OWNER POLICY OF TITLE INSURANCE
SCHEDULE B
G.F. No.: 95-1296D
Policy No.: 90-00-476973
EXCEPTIONS FROM COVERAGE
This Policy does not insure against loss or damaEe (and the Company will not pay costs,
attorneys' fees or expenses) that arise by reason of the terms and conditions of the
leases or easements insured, if any, shown in Schedule A and the following matters:
1. The following restrictive covenants of record intemized below (the Company must
either insert specific recording data or delete this exception:
This exception is hereby deleted in its entirety.
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any
encroachments or protrusions, or any overlapping of improvements.
3. Homestead or community property or survivorship rights, if any, of any spouse of any
insured.
4. Any titles or rights asserted by anyone, including, but not limited to, persons, the
public, corporations, governments or other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or perennial
rivers and streams, lakes, bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or
changed by any government, or
c. to filled-in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of
vegetatio~ or the right of access to that area or easement along and across
that area.
5. Standby fees, taxes and assessments by any taxing authority for the year 1996 and
subsequent years, and subsequent taxes and assessments by any taxing authority for
prior years due to change in land usage or ownership.
6. The following matters and all terms of the documents creating or offering evidence of
the matters ( We must insert matters or delete this exception):
a. Any visible and apparent easements over and across said property, the
existence of which does not appear of record.
b. Any part or portion of the herein described property, lying within the
boundaries of a public or private road or right of way.
c. kights of parties in possession.
d. Any outstanding oil, gas and other mineral interest owned by others of record
in the office of the County Clerk of Denton County, Texas.
Lawyers Title Insurance Corporation
Form T-l: Owner Policy-Schedule B Effective January 1, 1993
CONDITIONS AND STIPULATIONS-CONTINUED
13. SUBROGATION UPON PAYMENT OR SI=i~LEMENT. agreed to by both the Company and the Insured. Arbitration pursuant to
(al The Company's Right of Subrogation. this policy and under the Rules in effect on the date the demand for
arbitration is made or, at the option of the insured, the Rules in effect at Date
Whenever the Company shall have settled and paid a claim under this of Policy shall be binding upon the parties. The award may include
policy, all right of subrogation shall vest in the Company unaffected by attorneys'feesonlyifthelawsofthestateinwhichthelandislocated permit
any act of the insured claimant, a court to award attorney's fees to a prevailing party. Judgment upon the
award rendered by the Arbitrator(s) may be entered in any court having
The Company shall be subrogated to and be entitled to all rights and jurisdiction thereof.
remedies that the insured claimant would have had against any person The law of the situs of the land shall apply to an arbitration under the
or property in respect to the claim had this policy not been issued. If Title Insurance Arbitration Rules.
requested by the Company, the insured claimant shall transfer to the A copy of the Rules may be obtained from the Company upon request.
Company all rights and remedies against any person or property necessary 15. LIABIMTY LIMITED TO THIS POLICY: POMCY ENTIRE CONTRACT.
in order to perfect this right of subrogation. The insured claimant shall
permit the Company to sue, compromise or settle in the name of the insured (al This policy toget her with all endorsements, if any, attached hereto
claimant and to use the name of the insured claimant in any transaction by the Company is the entire policy and contract betv~en the
or litigation involving these rights or remedies, insured and the Company. In interpreting any provision of this
If a payment on account of a claim does not fully cover the loss of policy, this policy shall be construed as a whole.
the insured claimant, the Company shall be subrogated to these rights (b) Any claim of loss or damage, whether or not based on negligence,
and remedies in the proportion that the Company's payment bears to the and which arises out of the status of the title to the estate or interest
whole amount of the loss. covered hereby or by any action asserting such claim, shall be
If loss should result from any act of the insured claimant, as stated restricted to this poticy.
above, that act shall not void this policy, but the Company, in that event, (c) No amendment of or endorsement to this policy can be made
shall be required to pay only that part of any losses insured against by except by a writing endorsed hereon or attached hereto signed
this policy that shall exceed the amount, if any, lost to the Company by byeitherthePresident, aVicePresident, the Secretary, an Assistant
reason of the impairment by the insured claimant of the Company's right Secretary, or validating officer or authorized signatory of the
of subrogation. Company.
(b) The Company's Rights Against Non-lnsured Obligors. 16. SEVERABILITY.
The Company's right of subrogation against non-insured obligors shall In the event any provision of the policy is held invalid or unenforceable
exist and shall include, without limitation, the rights of the insured to under applicable law, the policy shall be deemed not to include that
indemnities, guaranties, other policies of insurance or bonds, notwithstand- provision, and all other provisions shall remain in full force and effect.
lng any terms or conditions contained in those instruments that provide 17· NOTICES, WHERE SENT.
for subrogation rights by reason of this policy. All notices required to be given the Company and any statement in
14. ARBITRATION, wnting required to be furnished the Company shall include the number of
Unless prohibited by applicable law or unless this arbitration section is this policy and shall be addressed to the Company at its corporate
deleted by specific provision in Schedule B of this policy, either the headquarters, 6630 West Broad Street, Richmond, Virginia 23230. Mailing
company or the insured may demand arbitration pursuant to the Title address: Post Office Box 27567, Richmond, Virginia 23261· Please include
Arbitration Rules or the American Arbitration Association· Arbitrable thenumberofthis policy.
matters may include, but are not limited to, any controversy or claim
between the Company and the Insured arising out of or relating to this COMPLAINT NOTICE.
policy, any service of the Company in connection with its issuance or the Should any dispute arise about your premium or about a claim that
breach of a policy provision or other obligation. All arbitrable matters when you have filed, contact the agent or write to the Company that issued
the Amount of Insurance is $1,000,000 or less SHALL BE arbitrated at the the policy. If the problem is not resolved, you also may write the Texas
request of either the Company or the Insured, unless the insured is an Department of Insurance, P.O. Box 149091, Austin, TX 78714-9091, Fax
individual person (as distinguished from a corporation, trust, partnership, No. (512) 475-1771. This notice of complaint procedure is for information
association or other legal entity). All arbitrable matters when the Amount of only and does not become a part or condition of this policy.
Insurance is in excess of the $1,000,000 shall be arbitrated only when
IN WITNESS WHEREOF the Company has caused this policy to be signed and Sealed, to be valid when Schedule A is countersigned by an authorized
officer or agent of the Company, al~ in accordance with its By-Laws. ~
Secretary President
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